Fed: 60 per cent of doctors at risk of quitting - AMA

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Fed: 60 per cent of doctors at risk of quitting - AMA

CANBERRA, April 24 AAP - More than half of Australia's doctors would have to stop workingif the country's biggest medical defence group collapsed, the Australian Medical Association(AMA) has warned.

AMA president Kerryn Phelps said 60 per cent of doctors would be forced to quit ifAustralasian Medical Indemnity Ltd, a division of United Medical Protection (UMP), wentbust.

"Ninety per cent of NSW doctors would have to immediately stop work because they wouldnot be registered," she said.

"Sixty per cent of the country's doctors would not be able to work without insurance."

AMIL provides medical indemnity cover for more than half of Australia's doctors.

The government has offered UMP a $35 million lifeline but has refused to give the groupany further financial assistance.

In a leaked letter, Prime Minister John Howard told UMP the government would work toexplore solutions to avoid medical services being withdrawn.

"However, in light of the continued deterioration in the group's financial position,the government has decided that it would be inappropriate to provide the assistance thatyou have sought," Mr Howard said in the letter.

Federal, state and territory health ministers, doctors groups, lawyers and consumergroups met in Canberra yesterday to try and find a solution to Australia's medical indemnityinsurance crisis, with skyrocketing premiums threatening the health industry.

While they reached agreement on a range of measures, Assistant Treasurer Helen Coonanadmitted there was no guarantee premiums would not rise as a result of yesterday's plan.

"The whole purpose of the public liability forum and this forum has been to put a platformunder spiralling costs," she said.

AAP sm/jmd/sb

KEYWORD: INDEMNITY DAYLEAD